Real Estate Q&A
How do I save at least $10,000 when buying?
How do I know if I'm getting the best loan?
Why work with one of your FREE buyer agents? (Buyer's agent vs. Listing agent)
Why are you helping For Sale By Owners?
Am I really seeing everything for sale?
Can I still buy with poor/bad credit?
What are some new construction traps?
Why are you and your agents free?
_____________________________________________________________________
How do I save at least $10,000 when buying?
Saving money when buying a home can be easily done if you know what your doing.
-
The largest savings in real estate is your loan. By asking any lender for a Good Faith Estimate (GFE) in writing and then showing it to other lenders in an attempt to out bid each other, will bring your greatest savings. Knowing the type of loan you have, rates, upfront money and the terms of your loan will let you know how much you'll save over the life of your loan/mortgage.
-
The second way to save is by working with a Free Buyer's Agent. They are licensed real estate agents that only represent the buyer 100% of the time and they know how to negotiate offers with the seller or the listing agent. Our free buyer agents can save buyers an average of 3%-4% off the sales price through price negotiations or closing costs. On a $500,000 home that would be a savings of $15,000-$20,000. - click here
-
Lastly, we always recommend a home inspection even if it's a new home. Sellers, listing agents and builders don't always know of problems in the home and some may not disclose known issues to you. A general home inspector will go through your potential purchase from top to bottom. This includes the attic and the crawl space - areas that very few sellers, agents or builders go. Avoid costly repairs by knowing what your buying.
How do I know if I'm getting the best loan?
You will be subjected to hundreds of lending ads with the promise of best rates or competing lenders. The problem is that most of these advertising lenders will leave out the details of the actual loan. Look at the fine print at the bottom of each ad, they will exclude fees that they charge during their process or only show you the P&I payment (principle & interest). Other fees that you will end up paying could add hundreds of dollars to your monthly payment or thousands over the term of your loan. How do you know that companies that use competing lenders aren't showing you the 4 highest bids? Lenders make their income off of commissions (loan origination fee), junk fees and your loan amount. Many want you to buy more than you can truly afford and don't care if you end up in financial ruin or foreclosure because they get paid the moment you buy and close the purchase of your home.
Most people will shop around for a car or even their groceries but they go to the first lender they talk to - Why? Buying a home will be your biggest investment and typically your highest monthly debt. Most home mortgages are for 30 years and you could end up over paying by thousands if you go with the wrong loan. You will need to understand the type of loan your applying for and ensure it's the right one for you, not the lender.
The best way to verify your getting the best loan is to see any lender and ask for a "Good Faith Estimate" (GFE). The GFE will tell you all the details of your loan to include your up front money, down payments and monthly mortgage. Once you get a GFE, show to other lenders and tell them to beat it in writing. - click here
Why work with one of your FREE buyer agents?
Today's Home Buyer is an Exclusive Buyer's Agency which means we only represent the needs of a home buyer and we don't solicit commission paid listings. This ensures a buyer is seeing everything on the market for sale including properties that are "For Sale by Owner" and not only homes that are represented by a listing agent, their team or their real estate office. If it has a "For Sale" sign on it, our free agents can show it!
Many buyers believe that by going to the listing agent for help on the purchase of a home will save them a lot of money or get them a better deal.
Question: If the listing agent represents the seller under a legal contract to get them the highest price and best deal possible on the sale of their home, how is that same agent suppose to get the buyer the lowest price and best deal possible? They Can't
Our Promise To You
-
All of our buyer services and buyer agents are 100% free. No fees will ever be added or hidden in your loan or purchase.
-
We will ensure you see everything on the market that meets your needs. Any real estate office listing, For Sale By Owners, and bank/government repo's properties. If it's "For Sale" we'll show it.
-
Our free buyer agents are experienced and professional.
-
We'll recommend any needed inspections
-
Assist or direct you to professional services like lenders, appraisers, inspectors, moving companies, escrow . . .
-
Our goal is to save you at least $10,000 on your home purchase.
How do you know if the home you want to purchase is safe? There are many hidden problems or unseen defects in homes today, including new construction homes. Many buyers feel that the appraiser for their loan will catch any issues and bring it to the buyers attention. Not true, and appraiser is looking more at value than hidden defects. An appraiser won't go into crawl spaces, look under a home, or enter the attic. If you buy a new construction home, many builders or their workers will forget to connect heating hoses, electrical switches, fans, etc... Every buyer should invest in a "General" home inspection.
-
Hire a licensed and reputable general home and pest inspector. Most inspectors include a pest review with their findings.
-
Use our "Find A Pro" page for a list of professionals in your area - "Find A Pro"
-
Use your inspection findings to negotiate repairs on the home or to make price changes.
-
Don't be afraid to walk away from a home if the repairs are too expensive. Many sellers price their homes knowing there are needed repairs and won't agree to fix any issues found.
Why are you helping For Sale By Owners?
Many real estate agents and companies won't show buyers a "For Sale By Owner" home because they won't get paid a commission. We want buyers to see everything on the market for sale to include non-paid listings.
Here are some benefits for us, the buyer and the for sale by owner:
-
You see homes that you won't find in most real estate web sites
-
Many FSBO's are willing to pay a fee if an agent brings a buyer that purchases their property.
-
Many FSBO's need to buy after the sale of their property and our free agents will assist them on their next purchase.
-
The national average of buyers looking at each home for sale is 5. Only 1 can buy a that home so we can assist the other 4 potential buyers find what they are looking for.
-
Many FSBO's don't want to pay commissions to sell their home in order to save money. Several of these same owners reduce the price of their property by the commission fees bringing additional savings onto the buyer.
-
We aggressively help FSBO's market their homes to help get the property sold and to help us generate more business. A win-win partnership for all involved.
Am I really seeing everything for sale?
Many listing agents, team or companies want you to only see their listings. Why? When a commission paid seller puts their home on the market for sale, they have agreed to pay the listing agent and the agent representing the buyer. Several listing agents want to double end the commission and represent both sides of the transaction (duel agency). This means the agent is trying to get the seller the highest price and best deal then turning around and trying to get the buyer the lowest price and best deal. There is no way to do this without someone losing in this situation.
Today's Home Buyer works with over 180,000 licensed and Free Buyer Agents across the U.S.. Our agents show you everything for sale through their local MLS to include other real estate company listings. TodaysHomeBuyer.com advertises "For Sale By Owners", agent listed homes and bank repo's. - click here
Can I still buy with poor/bad credit?
Going to just any lender for a loan is ill advised. You want to know your true monthly payments and you want to know if your getting the best rates. Many ads are claiming great rates and competing lenders but they leave out additional fees that could cost you hundreds more each month or only show you the 4 highest rates. Keep in mind that lenders make money off how much they charge you, how high they can qualify you for and inflating your rates. We'll show you how to read your "Good Faith Estimate" and use it to shop for the best loans available.
Many individuals can buy with poor credit even after a bankruptcy or foreclosure. The down side is you will pay higher rates than someone with good credit. You can still save a lot of money on your monthly payments by knowing how to shop and we'll even show you how to fix your credit and get you a better loan within 2 years of your purchase - free. - click here
Are rent backs a trap? (also known as a "Lease Purchase")
The reality of rent backs is that to buy it back many investors will require you to get your loan through their lender when it's time to buy the home. In many cases they are the lender and will charge you a much higher rate than the current market. It has been proven that some of the investors or lenders involved with this offer will protect themselves by taking the property back from you if you don't qualify under their finance terms and in their time frame. The lenders, agents or investors offering this type of program may be hoping you fail when qualifying within the lease time so they can take the home back and sell it for the equity earned over the past years.
It is recommended to always have an attorney review any type of "Rent Back" contract before signing it.
Is the property you like really worth the asking price? We will show you comparables in the area and let you know if it's overpriced, under priced or just right. Don't over pay and ensure your getting the best deal available. Our buyer agents represent you, not the seller or the listing agent! - click here
There are many home loans available with $0 down payment even if your self employed or if you have questionable credit. The main thing to remember when obtaining a loan is to shop around and understand any fine print. Many ads you see in magazines or T.V. have fine print that no one understands except the lenders lawyer. Don't agree or sign anything until you fully understand the type of loan being offered to you. - click here
What are some new construction traps?
-
New Construction - Site Agents
Many new construction sites have "site agents" claiming they are there to represent any buyers needing one of their homes. Keep in mind that a builder is putting up anywhere from 20 to 100 homes at one time and the lively hood of this site agent will depend on how long the builder keeps them. Does the site agent put your needs first on only one sale or the builders needs first on many more sales? Remember, many builders are investors and they want their profits!
-
New Construction - Buyer Bonus
Most new construction sites will offer a "Buyers Bonus". This is where a builder will pay for $3000-$6000 of your closing costs or upgrades but what they don't tell you is that you must use their lender. Many of these builders get discounts on construction financing or own a piece of the mortgage company and that mortgage company (or lender) will make up the difference by adding fees or increasing rates on your loan. In the end you may save up front but you'll lose thousands more over the term of your loan.
Things To Remember:
-
Always ask for a "Good Faith Estimate" and shop your loan before you commit to the lure of a buyers bonus.
-
Is the builder doing a good job? Ask new home owners in that development and get their opinion. Ask how much they paid, any problems and we're findings taken care of in a timely matter.
-
Get a home inspection.
Why are you and your agents free?
Any 1 of these 5 reasons
-
We are sponsored by your local professionals listed in the "Find A Pro" directory.
-
If the home you purchase is listed by a real estate company, the seller has already agreed to pay a commission. The commission is shared between the listing agent and the agent representing the buyer.
-
Most states are "agency states". This is where the seller and the buyer can be represented independently. Most sellers are willing to pay a commission to have an agent sell their properties meaning the buyer is represented at no cost.
-
Many "For Sale By Owners" are offering to pay a fee or commission to whomever brings a buyer that purchases their home.
-
By partnering with "For Sale By Owners", we benefit each other with the sale of their home and their next purchase. If the owner isn't purchasing after their sale, we benefit from any buyers gained by our marketing. The national average of buyers looking at a "For Sale By Owner" is 5. Only 1 can buy the home and we benefit by helping other 4 buyers.